Author: Thomas J. Ryan

Under Armour Inc.’s revenues tumbled 41 percent in the second quarter, but significant declines are also expected in the second half – in the range of 20-to-25 percent – due to uncertain consumer spending, inventory constraints and a likely promotional climate.

Powered by resiliency in the U.S. region and skyrocketing e-commerce gains, Crocs Inc. became one of the rare industry players to deliver strong earnings gains in the pandemic-sidetracked second quarter. Sales declined only slightly. Lean inventories, however, will limit second-half growth.

Puma reported a sharp decline in its second-quarter sales due to COVID-19, but sales were only down 6 percent in June and ran approximately flat in July as stores reopened. A bright spot has been online as Puma’s e-commerce vaulted 97 percent in Q2.

Garmin Ltd. reported sales and earnings were down in the second quarter ended June 27 but both came in well ahead of Wall Street’s targets due to a stellar performance from the Fitness segment as well as solid performances from Garmin’s Outdoor and Marine segments.

Rocky Brands Inc.’s sales were slightly down and adjusted earnings flat year-over-year in the second quarter despite COVID-19’s impact, handily topping Wall Street’s targets. On a conference call with analysts, Jason Brooks, president and CEO, said, “Despite being up against the most difficult operating conditions we have ever experienced, our business exhibited increasing strength as the quarter progressed.”

In court papers, Ken D’Arcy, Remington Outdoors’ CEO, said the firearm’s giant’s second bankruptcy in two years was partly due to elevated inventory levels and a wide range of brands that extended the company beyond its “core focus” coming out of its first bankruptcy. He added, “Most importantly, the unfavorable business trends continued after exit from the prior cases.”

The passage of the Great American Outdoors Act was praised by a wide array of outdoor advocates across the hunt, camp, hike, and fish spaces. The bill, expected to be quickly signed into law by President Donald Trump, promises to address scores of long-neglected maintenance projects at Yellowstone, the Grand Canyon and hundreds of other national parks across the country.

Hibbett Sports Inc. said it expects same-store sales to catapult in excess of 70 percent in the second quarter ended August 1 but cautioned that some of the boosts to the second quarter won’t be recurring in the second half. On a conference call with analysts, Hibbett officials also noted that prospects for the back-to-school selling season remain up in the air as school openings are uncertain.

As businesses have been greatly impacted when the economy took a hit because of COVID-19, SGB Executive reached out to PR veterans in the active lifestyle space to ask how they are surviving the wave that has businesses shifting their attitudes and budgets. 

Last June, The Running Industry Association (RIA) successfully launched the first RIA KickShow with a promise to “create a true working environment that fosters buying efficiency and connects retailers with brands in a new way.” A year later, the show returns with a virtual format but the same mission.

Oppenheimer upgraded its rating for Dick’s SG to “Outperform” from “Perform” due to expected strength in the sporting goods category amid the pandemic. Brian Nagel, Oppenheimer’s lead analyst in the space wrote in a note, “The company’s robust omnichannel business model is positioned well to capitalize upon improving consumer demand for items associated with consumers now spending more time at home and poised to further benefit as shoppers shift back to team sports and licensed products.”

Genesco Inc.’s business was devastated by COVID-19-related store closures, but online sales have accelerated to more than 300 percent growth in May and sales at its flagship Journeys chain that have reopened are comping “nicely positive.”

The May Edition of the COVID-19 Impact Survey from the World Federation of the Sporting Goods Industry (WFSGI) found that 37 percent of global sports industry leaders saw their business dropping by 50 percent in June. While dismal, the findings mark an improving trend versus the nearly 50 percent that had expected May sales to drop 50 percent.

A host of analysts lifted their price targets on Dick’s Sporting Goods after the retailer’s first-quarter report showed online sales accelerating during the pandemic and many stores comping positively as they’ve reopened. Insights from Goldman Sachs, Stifel, Susquehanna, Morgan Stanley and Cowen.